SEMESTER A221

BKAM2013 MANAGEMENT ACCOUNTING I

TUTORIAL 4 (TOPIC 6)

REQUIREMENT:
All answers are to be prepared using Microsoft Excel. You need to combine all answers into
ONE Excel file per group. Each group will submit ONLY ONE Excel file to the UUMOL.

Guidelines:
1. On the sheet of your answers, create one section for data INPUT and another section(s) for
your answers - the OUTPUT. Use different colours for shading to separate between the
INPUT and OUTPUT sections.

2. Use as much formula as possible and always use cell referencing in the OUTPUT
section. Use Bold or colour to highlight your answers’ cells.

3. If the requirements are too many or crowded, you may use a new sheet and name it
accordingly (like Q(a), Q(d), etc). The first sheet is for the cover page.

4. Save your file according to your class and group number and name. Example “Tutorial
1 - A - G1”, “Tutorial 2 - B - G3”.

5. For text-written answers (such as giving reasons/justifications, journal entries, etc.),

you can merge several cells and format it properly to make it visible and readable.

6. File formatting as shown below:

QUESTION

Classic Malaysia Berhad (CMB) is a manufacturing company that produces apparel and
footwear. The company has two production departments: apparel and footwear. Both
departments share the same support services for information technology (IT) and human
resources (HR). The following shows costs for production and support departments.

Total Costs
(RM)
Support Information Technology 26,000
Departments Human Resources 14,000
Production Apparel 105,000
Departments Footwear 75,000
Total Costs 220,000

The total costs of the support departments (IT and HR) are allocated to the production
departments (apparel and footwear) using a single rate based on the following:

Information Technology: Number of IT labor-hours worked by department

Human Resources: Number of employees supported by department

Data on the bases, by department, are given as follows:

Department Number of IT Number of
Labor-Hours Worked Employees
Apparel 20,160 880
Footwear 15,840 352
Information Technology - 368
Human Resources 12,000 -

REQUIRED:

(a) Using the direct method, calculate the total costs of the production departments after the
support department costs have been allocated.

(b) Using the step-down method, calculate the total costs of the production departments after
the support department costs have been allocated.

(c) Using the reciprocal method, calculate the total costs of the production departments after
the support department costs have been allocated.

(d) Determine the overhead rates per labor-hours work for Apparel and Footwear.